Rather than trying to combat diabetes through the management of insulin production in the pancreas, SGLT inhibitors reduce the reabsorption of glucose into the bloodstream by the kidneys, making it a less invasive way to control diabetes and obesity in the human body. Review the video below to understand the science behind Sirona's diabetes solution as well as the applications for skin lightening and other cosmeceuticals and biological ingredients.

The study on SBM's SGLT Inhibitor builds upon the positive findings earlier in 2012 on diabetic rats and primates. SBM has significant short-term trading potential as the stock more than doubled to a 10.5 cent high before pulling back to 8 cents on Friday. This trading was similar to EKG's trading on Friday, January 20th, where TSX News recommended a buy on the stock at 13 cents after it pulled back from a high of 19 cents on that day. EKG hit as high as 59 cents that following week, providing traders with up to a 350% gain in a matter of a few days. Investors and traders should be prepared for large gains on SBM this week as word gets out on the potential of their superior diabetes-combating product.

The market for treatment of diabetes worldwide was $376 billion in 2010 and is expected to grow to $490 billion by 2030. Assuming the commercialized version of Sirona's SGLT Inhibitor attains just 1% of this $400 billion market, that is $4 billion in revenue a year. SBM will likely sign a development and commercialization agreement with a larger pharmaceutical company that will result in 5-10% royalty back to the company. Assuming a 7.5% royalty and a 50% profit margin, that is $150M in net earnings a year. A 15 to 1 P/E would imply a market cap of $2.25 billion. The company has just under 80 million shares outstanding today. If various financing initiatives and stock options were to take that to 135M shares, that would lead to a price of $16.67. Applying a 10% risk factor to account for the early stage of this opportunity leads to a target price of $1.67, excluding all other initiatives within the company's pipeline.